01-2020 JP Morgan Coherus BioSciences Corporate …

Copyright ©2020 All Rights Reserved.

38th Annual J.P. Morgan Global Healthcare ConferenceJanuary 14, 2020

Coherus BioSciences

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Forward Looking StatementsExcept for the historical information contained herein, the matters set forth in this primer are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, Coherus’ plans to launch Bioeq’s biosimilar to Lucentis® in 2021 in the United States, applying Coherus’ proficiencies and infrastructure developed for the oncology therapeutic commercial environment to the ophthalmology therapeutic commercial environment; Coherus’ ability to file with the FDA for the Innovent biosimilar candidate to Avastin® in late 2020 or early 2021 depending on FDA interaction timing, to launch Innovent’s biosimilar candidate to Avastin® in the United States and to successfully apply its proficiencies and infrastructure developed for the oncology environment to repeat a broad commercial launch that expands choice, improves access and lowers healthcare costs; and whether Coherus will exercise its option to commercialize Innovent’s Rituxan® biosimilar in the U.S.; Coherus’ ability to maintain UDENYCA®’s market position as the leading pegfilgrastim biosimilar; Coherus’ ability to continue to outperform other biosimilar launches; Coherus’ ability to gain additional market share beyond 20% through 2020 and for UDENYCA® to continue capturing market share from both Neulasta® Onpro® and Neulasta® prefilled syringe; Coherus’ plans to complete certain development and regulatory objectives to support a BLA filing in 2021 and a commercial launch in 2023, if approved, for CHS-1420 and Coherus’ market share with CHS-1420; Coherus’ ability to achieve sales between US $500 million and US $1 billion for CHS-1420; commercial capabilities having the potential to deliver long-term growth across three therapeutic areas; details regarding the future Humira® biosimilar market; and Coherus’ ability to advance the development of CHS-2020 and the timing of a commercial launch if approved. Such forward-looking statements involve substantial risks and uncertainties that could cause Coherus’ actual results, performance or achievements to differ significantly from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the risks and uncertainties inherent in the clinical drug development process; the risks and uncertainties of the regulatory approval process, including the timing of Coherus’, Bioeq’s or Innovent’s regulatory filings; the risk that Coherus is unable to complete commercial transactions and other matters that could affect the availability or commercial potential of Coherus’ biosimilar drug candidates; and the risks and uncertainties of possible patent litigation. All forward-looking statements contained in this press release speak only as of the date on which they were made. Coherus undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Coherus’ business in general, see Coherus’ Quarterly Report on Form 10-Q for the three months and nine months ended September 30, 2019, filed with the Securities and Exchange Commission on November 6, 2019 and its future periodic reports to be filed with the Securities and Exchange Commission. Our results for the quarter ended September 30, 2019 are not necessarily indicative of our operating results for any future periods.


Agenda

• Delivering on the Promise of Biosimilars

• Oncology Franchise

• Ophthalmology Franchise

• Inflammation Franchise


Delivering on the Promise of Biosimilars

• Market share December 2019, 20.5%• Most successful biosimilar launch to

date1

• Cash-flow positive 2 quarters post launch• Strong balance sheet to support pipeline and

long-term growth trajectory

5/312/8

1/11

6/283/8

4/5

5/3

7/26

8/23

9/20

10/1

8

11/1

5

12/1

3

UDENYCA®Fulphila®

Biosimilar Pegfilgrastim Market Share in 2019 % of Unit Share

UDENYCA® Net Revenue in 2019 by Quarter$ Million

37

83

112

Q2Q1 Q3

Q1-Q3 2019 total ~ $232M

Source: IQVIA NSP 1/9/2020 1 Based on IQVIA sales, data pull January 9, 2020

0

5

10

15

20

25UDENYCA®

Fulphila®


Perceived Risks as the BPCIA was Enacted

Demonstrated Proficiency at Addressing Key Biosimilar Risks

Coherus Results

Regulatory pathway FDA approval for UDENYCA®

without a Phase 3

Patent thickets Successfully navigated patent dance for UDENYCA®

Commercial performance

Best pharma launch in 20191 with disciplined ASP decrease

1 Based on IQVIA sales, data pull January 9, 2020


Launch Success Built on Preparation, Branded Strategy and Execution

Listened to our customers years ahead of launch

Branded biologic positioning focused on Services, Supply

and Value

Top performing team delivering Choice

without Compromise to the marketplace

ExecutionStrategyPreparation


Preparation –Coherus Invested Heavily Before Launch

• 1,350 interactions in over 12 health care congresses

• 1,000+ accounts called by our field team

• 1,000+ market research interactions

• 25 advisory boards with physicians, pharmacists, office practice managers and nurses

• 100+ interactions with national, regional and government payors, covering ~95% of the Neulasta market


Strategy –Customer Centered, Value Focused Approach

• We are providing a

comprehensive patient and

provider solution (Coherus

COMPLETETM)

Pricing

Contracting

• Made in the USA with

consistently positive regu-

latory inspection record

• Abundant market supply

capacity for launch

• Our launch WAC price of

$4,175, a 33% discount vs.

Neulasta, was attractive to

payors without diminishing

the value proposition

• Tailored contracting for each

segment to deliver the win-

win value proposition beyond

list price to all stakeholders

Supply

Services

Core elements of our Value Proposition


Execution –Top Performing Team Delivering on the Marketplace

The Coherus COMPLETE™Co-Pay Assistance Programreduces out-of-pocket costs for commercially insured1 patients

Patient Assistance Program (PAP): UDENYCA® can be provided at no cost to patients with financial hardship who meet program eligibility criteria2

Alternative Funding Support: Coherus COMPLETE™ will investigate alternative financial support through independent foundations for eligible patients

1 Patients covered under Medicare, Medicaid, or any federal or state program will not be eligible for the Commercial Co-Pay Program2 The PAP does not cover costs associated with administering UDENYCA®

EXAMPLE: Coherus COMPLETE™ Patient Services Platform


Commercial Capabilities can be Effectively Applied to Other Assets and Therapeutic Areas in the Medium Term

Expertise can now be directly applied to other assets and therapeutic areas

Validated branded biosimilar approach with success of UDENYCA®

Developed differentiated capabilities and deep understanding of U.S. healthcare ecosystem

Pricing and Contracting

Relationships

Brand

Access

Distribution

Buy & Bill Expertise


Partner of Choice for Unlocking U.S. Value of Biosimilars

• U.S. represents the largest

biosimilar market opportunity

• Demonstrated success and

unique focus make Coherus a

partner of choice to maximize

U.S. biosimilar opportunities

• Recent ophthalmology and

oncology deals demonstrate

how we are executing on these

arbitrage opportunities

Oncology – Jan. 2020In-licensed rights to

Avastin® Biosimilar from

Innovent (China)

Ophthalmology – Nov. 2019In-licensed rights to Lucentis®

Biosimilar from Bioeq

(Europe)


Commercial Capabilities Have the Potential to Deliver Long-Term Growth Across Three Therapeutic Areas

2019 2021 2023 2025

Lucentis®

biosimilar

Humira®

biosimilar

Eylea®

biosimilar

2022FranchiseU.S. Market Opportunity1

Oncology $10.8 B

Ophthal-mology $6.4 B

Immunology $14.9 B

1 U.S. market size in 2019 2 Option to in-license

Source: Evaluate Pharma

2020 2024

Avastin®

biosimilarRituxan®

biosimilar2


Agenda






Broad Launch of UDENYCA® Delivering Strong Results

Q1-Q3 2019 Revenue: ~ $232 Million

20.5%

6.0%

73.5%

Neulasta

Fulphila

U.S. Pegfilgrastim MarketUnit Market Share in December 20191 • UDENYCA® capturing market

share from both Neulasta Onpro and Neulasta pre-filled syringe

• Market share greater than 20% in 2019 and we expect continued growth through 2020

• Most successful biosimilar launch in the U.S. to date2

1 4-week average 12/2/19 – 12/27/19Source: IQVIA NSP 1/9/2020

2 Based on IQVIA sales, data pull January 9, 2020


Significant Potential Additional Growth Opportunity Within Three Key Market Segments

Source : IQVIA DDD Data 01/01/2019 through 12/13/2019; YTD Nov 2019 vs 2018

Neulasta 2019 Share of Unit Sales by Segment

40%

25%

34%

Retail

Clinics340BHospitals

Non-340B Hospitals

1%• Growth opportunity in

accounts that already have adopted UDENYCA®, and in those that have not yet initiated utilization

• Observed ~5% growth in overall pegfilgrastim market in 2019, suggesting biosimilars have increased patient access


Coherus Acquires Commercial Rights for Avastin® Biosimilar in United States and Canada from Innovent Biologics

• Innovent’s Avastin® biosimilar filed in China in January 2019 and is currently under review

• Coherus will pay Innovent ‒ Up to $45M in milestones‒ Customary double digit royalties

• Coherus anticipates performing a 3-way PK study and additional analytical similarity exercises prior to filing the BLA with the U.S. FDA in late 2020 or early 2021

• Coherus also acquired an option to commercialize Innovent’s Rituxan® (rituximab) biosimilar for the U.S. and Canada

• Over 2,000 employees across China• Commercialized PD-1 in China (Tyvyt ®)• Extensive pipeline of 20+ candidates

Innovent Biologics

Innovent Headquarters in Suzhou, China


Innovent Avastin® Biosimilar has Strong Analytical and Bioanalytical Similarity PackageCEX-HPLC Profiles of IBI305 and Avastin® Consistent Highly Similar Potency in Reporter Gene Bioassay

Highly Similar VEGF ELISA Binding


Innovent Avastin® Biosimilar Demonstrated PK Bio-equivalence, Phase 3 Study in NSCLC Met Primary Endpoint PK Bioequivalence Study Randomized, Double Blind Phase 3 Clinical Study

ScreeningBevacizumab 15mg/kg + paclitaxel 175mg/m2 +

carboplatin AUC=6 Q3W

Bevacizumab 7.5 mg/kg Q3W

IBI305 15mg/kg + paclitaxel 175mg/m2 + carboplatin AUC=6

Q3W

IBI305 7.5mg/kg Q3W

1:1

Randomization(N= 450)

No more than 6 weeks Continue treatment until progression

IBI305 (N=221) Bevacizumab (N=220)

ORR [n (%)] 98 (44.3%) 102 (46.4%)

Inter-group ratio (90% CI) 0.95 (0.803, 1.135)

Equivalent std 90% CI (0.75, 1/0.75)

Conclusion Equivalent clinical efficacy

IBI305 Avastin®IBI305 / Avastin® 90% CI

AUC0-inf(h*μg/mL)

20180.2 (18.6)

21281.4(19.8)

0.9483 (0.8896, 1.0108)

AUC0-t(h*μg/mL)

19704.2 (18.8)

20736.9 (19.1)

0.9502 (0.8921,1.0120)


Innovent Transaction Targets $7 Billion U.S. Market OpportunityAvastin® U.S. Revenues$ Billion

2.9 3.0 3.2

2017 2018 2019

Rituxan® U.S. Revenues$ Billion

4.2 4.4 4.4

20182017 2019

• Expected to continue to play a significant role in

lung, colorectal and other solid tumors, as

monotherapy or in combination with I/O agents

Significant healthcare and patient access needs expected to drive adoption of Avastin® and Rituxan® biosimilars in the U.S.

• Mainstay therapy for non-Hodgkin’s lymphoma

(NHL) and chronic lymphocytic leukemia (CLL)

markets, as well as rheumatoid arthritis



Agenda






Lucentis® In-License Agreement from Bioeq Signals Initiation of Commercial Phase of Ophthalmology Franchise

• Coherus in-licensed the leading Lucentis®

biosimilar candidate from Bioeq in 2019‒ Filed with FDA in December 2019‒ Expected launch in 2021, effectively

allowing Coherus to play a key role in market formation

• Financial considerations‒ Mid-single digit million upfront plus

other regulatory and launch milestones‒ The companies will share profits

approximately equally

• Expect low competitive intensity due to technical complexity

Bioeq Lucentis® Biosimilar program

Similar Binding and Bioactivity Lucentis-FYB201

Met wAMD Phase 3 Primary endpoint (BCVA after 8 weeks)


Critical Success Factors for Ophthalmology and Oncology are Highly Similar; Commercial Expertise will TranslateOncology G-CSF Ophthalmology anti-VEGF

Large Market Opportunity

Concentrated Prescriber Base (80% of volume)

Buy and Bill Reimbursement and Contracting

Important Access and Cost Saving Impact

Significant Commercial and Medicare Need

$4 Billion $6 Billion

~50% Medicare ~80% Medicare

~400 Accounts~2000 Accounts

ü

ü

ü

ü


The Anti-VEGF Ophthalmology Market is Very Concentrated

1 Accounts represent multiple physicians in clinics and satellite officesSources: AMA, American Academy of Ophthalmology, competitive intelligence

~20,000 Ophthalmologists ~10,000 Retina

specialists ~2,000 Lucentis®

accounts1

• Large portion of Lucentis® volume driven by small number of top accounts

• We believe relatively small incremental investment needed to address marketplace

U.S. Ophthalmology Market# of Accounts

~450 Accounts -90% of market

~40 Accounts -45% of market


A Complete Ophthalmology Product Offering Includes both Eylea® and Lucentis® BiosimilarsU.S. Eylea and Lucentis MarketUS $ Billion

• Anti-VEGF ophthalmology U.S. market is a > $6 billion opportunity

• CHS-2020 (Eylea® biosimilar) currently in pre-clinical development

• CHS-2020 Phase 3 expected initiation in 2021, with launch projected in 2025


1.7

2017

1.4

3.7

1.4

3.3

2016

4.1

1.8

2018

4.6

6.4

2019E

4.85.1

5.8

LucentisEylea


Agenda






Large Humira® Biosimilar Market Ripe for Disruption upon Biosimilar Entry in 2023

U.S. Humira® Revenues, US $ Billion

• Humira® expected to reach over $17 billion in annual sales before biosimilar entry in 2023

Source: Evaluate Pharma, Washington Post

15.9 17.3

2018 2019 20212020

13.7 14.8

2022

16.7

Humira® and Enbrel® List Prices Since Launch

• Chronic price increases in broader anti-TNF space created significant need for biosimilars

• Foresee massive decoupling of existing business structures in the business (e.g., PBMs)


Payers/PBMs and Specialty Pharmacy Likely the Most Significant Influencers in Driving Biosimilar Utilization

Role in Adalimumab Product Choice

Controls Influences Does Not Influence Commentary

Payer üManages formulary and

determines which therapies will be reimbursed

Specialty Pharmacy ü

Selects the biosimilar to dispense when multiple biosimilars are covered

Physician ü

Physicians, unlikely to write for a specific biosimilar, will defer to payer coverage for

selection of product

Patient üUnlikely to influence

physician selection of specific product

Source: 32 interviews with Pharmacy Directors at MCOs and PBMs, high prescribing physicians, and Specialty Pharmacy Stakeholders, conducted by TIG September – October 2019

Adalimumab Biosimilar Buying Process• Expect payors to

drive significant share away from originator in all market segments

• Coherus value proposition well positioned to address the needs of specific market segments


Coherus’ Significant Value Proposition Target Needs of Specific Segments

• CHS-1420 Humira® biosimilar BLA filing expected in 2020, with

expected competitive launch in 2023 if approved

• Overall, expect biosimilar disruption to drive significant share away

from originator in all market segments

• Coherus Choice without Compromise™ positioning expected to

address needs of specific payor segments

• Overall market share, if approved, expected close to 10% leading

CHS-1420 to potential $500 million to $1 billion peak sales


Delivering on the Promise of Biosimilars and Laying the Foundation for Continued Growthü Delivering on UDENYCA® (pegfilgrastim-cbqv) and expanding oncology franchise

− Most successful biosimilar launch in the U.S. with ~20% market share and ~$232 million net sales in first three quarters in 2019

− Acquired U.S. and Canada commercial rights for Avastin® biosimilar from Innovent, with an option to commercialize their Rituxan® biosimilar

ü Ophthalmology franchise nearing commercialization stage

− In-licensed leading Lucentis® biosimilar to address $6 billion anti-VEGF ophthalmology market if approved

− Internally developed CHS-2020 Eylea® biosimilar advancing in preclinical stage

ü Immunology franchise supported by CHS-1420 Humira® targeting competitive launch in 2023 in largest biosimilar market

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